In 2023, the US emerged as the leading country in sending remittances, surpassing $100 billion. India stands as the recipient of these funds, accounting for approximately 38% of the total amount. Remittances hold significance in supporting families and businesses within the US economy while also serving as a crucial source of income for individuals residing in developing nations. The remittance landscape within the US is continuously evolving, with remittances and peer-to-peer (P2P) payment apps gaining traction in recent years. These trends are expected to persist, facilitating convenient cross-border money transfers. The diversity and size of the US population play a crucial role, including over 40 million immigrants whose families reside overseas. According to World Bank projections, the USA estimates that it will reach $120 billion in remittances by 2025. The expansion is attributed to factors such as the robust economic growth in the United States, the growing need for skilled workers in other nations, and the rising popularity of digital remittances.
Modes of Sending Gift Remittances to the USA
- Cash: There are ways to send money to the USA, including using a courier service or sending it through the postal service. It’s essential to be aware that sending cash internationally carries some risk as it is more vulnerable to theft and fraud.
- Gift Cards: Sending money to the USA can be made easy with the use of gift cards. There are plenty of retailers where you can buy these gift cards and have them conveniently delivered to the recipient in the USA. The great thing about gift cards is that they provide the recipient with a range of shopping options, making them a versatile and thoughtful gift choice.
- Certificate of Deposits (CD): A CD is a savings account that provides a higher interest rate compared to a standard savings account. Individuals have the option to buy CD’s from either banks or non-banking financial companies (NBFCs) in India and have them delivered to recipients in the USA. The recipient can later convert the CD into cash upon its maturity. CD’s generally require a deposit and have a term ranging from 1 to 5 years.
- Wire Transfer: Sending money internationally via wire transfer is an efficient method. You have the option to initiate a wire transfer either from your bank account or by using a money transfer company. On average, wire transfers usually take around 1–2 business days to complete the process successfully.
- Money transfer companies: There are companies specializing in international money transfers that provide services for sending money across borders. Such companies often provide reasonable exchange rates and ensure speedy processing times.
Comparison of Cross-Border Payment Methods
| Parameter | Bank Transfers | moneyHOP | Debit/Credit Cards | Forex Card | Demand Draft |
| Transfer Speed | 3-5 days | 24-48 hours | 1-3 days | 1-3 days | 5-10 days |
| Exchange Rate | Moderate | Low | High | High | Moderate |
| Convenience | Moderate | High | High | High | Low |
| Fees | High | Low | Moderate to High | Moderate | Low |
| Security | High | High | Moderate | High | High |
| Transaction Limits | High | Flexible | Moderate to High | High | Low |
| Customer Support | Moderate | High | High | Moderate | Low |
Documents Required For Remitting Gift Money To The USA
The documents required for remitting gift money to the USA from India may vary depending on the money transfer service you use. However, some of the common documents required include:
- Passport: Passport number
- Proof of Identity: Government-issued ID, such as driver’s license or PAN card
- Gift Letter: Letter stating that the money is a gift
- Recipient’s Details: Full name, address, and bank account information
Make sure to reach out to the money transfer service you’re using and find out what documents they specifically need. You might have to submit paperwork like a marriage certificate or birth certificate if you’re transferring money to your spouse or child.
Calculation of TCS on Remittances
| Type of Remittance Abroad | Present TCS Rate |
| For the purpose of education & medical treatment | 5% of the amount or the aggregate amount over Rs. 7 lakh |
| Education when a loan is used to fund education | 0.5% of the amount or the aggregate amount over Rs. 7 lakh |
| Overseas tour packages | 5% without any threshold limit w.e.f 1st October 2023 (20% without any threshold limit) |
| Any other purpose | 5% of the amount or the aggregate amount over Rs. 7 lakh w.e.f 1st October 2023 (20% without any threshold limit) |
Here are a few additional points to keep in mind:
- The annual limit for remittances under LRS is based on your residency. If you and your spouse are both Indian residents, you can collectively send up to INR 14 lakh per financial year.
- As per the RBI, Under the Liberalized Remittances Scheme (LRS), every Indian resident can send up to USD 2,50,000 in a financial year. An individual can remit multiple times during the year for various purposes permitted under the LRS limit. However, the total amount of all such transactions must not exceed USD 2,50,000 in a Financial Year.
- It’s worth mentioning that the TCS on remittances is applicable even if the amount is sent to a close family member.
Rates & Fees
The charges and fees for sending gifts from India to the USA will vary based on the following factors:
- The specific amount of money being sent
- The chosen method of sending
- The bank or money transfer service being utilized
| Method | Flat Fee | Exchange Rate Margin |
| Banks | Rs. 500-1,000 | Variable |
| Money Transfer Companies | Rs. 300-500 | Variable |
| moneyHOP | 200 | Variable |
| Online Remittance Platforms | Rs. 100-200 | Competitive |
Why pay more for international money transfers when moneyHOP is here?
- NO hidden fees
- ZERO convenience fees
- Real-time updates
- Lowest exchange rates
Why choose HOPRemit?
HOPRemit by moneyHOP is an instantaneous, cost-effective, user-intuitive, and contactless international remittance service that is tailor-made to serve Indians. It provides customers with complete transparency and significantly reduces the total transaction costs of sending money abroad. The HOPRemit platform represents the perfect concoction of a fintech’s agility and the security observed in a bank.
Here are some features that make HOPRemit different:
- Best Exchange Rates: HOPRemit provides some of the best exchange rates for currency conversions. They regularly update their exchange rates to ensure that customers get the most favorable rates possible.
- No Hidden Charges: HOPRemit is committed to transparency and honesty in their dealings. They do not charge any hidden fees or commissions, so customers can rest assured that the amount they see at the time of the transaction is the exact amount they will be charged.
- Fast Processing Time: HOPRemit understands the importance of timely money transfers. They process transactions quickly, usually within 48 hours, so that the money reaches the recipient as soon as possible.
- 24/7 Availability: HOPRemit operates round-the-clock, 365 days a year. Customers can access their services at any time of the day or night, regardless of their location.
- Freeze Exchange Rates for 24 Hours: HOPRemit offers the option to freeze exchange rates for up to 24 hours. This means that customers can lock in a favorable exchange rate and be certain that the amount they will receive at the time of the transaction will remain the same, regardless of any fluctuations in the market.
5 Simple Steps To Transfer Gift Money With moneyHOP
- Create an Account: To get started with HOPRemit, you’ll need to create an account by signing up using your email address and phone number. This process is quick and easy, and once you’ve signed up, you can start using the platform right away.
- Enter The Amount: Once you’re signed in, the first step is to choose the amount you want to send. You can do this by selecting the currency you want to send, choosing the purpose of the transfer, and entering the amount you want to send.
- We’ll Verify Your Details: To ensure security and prevent fraud, HOPRemit requires all users to complete their KYC (Know Your Customer) verification process. This involves providing some basic information about yourself, such as your name, date of birth, and address, and uploading a valid government-issued ID, such as an Aadhaar or PAN card. The verification process usually takes just a few minutes, and once completed, you’ll be able to use all the features of the platform.
- Enter Recipient Details: Once your account is verified, you can enter the details of the recipient you want to send money to. This includes their name, address, and other relevant information, such as their bank account details. You may also need to upload some additional documents, such as a proof of relationship or bank statement, depending on the purpose you have selected.
- Pay For Your Transfer: Finally, you’ll need to choose how you want to pay for your transfer. HOPRemit offers several payment options, including netbanking, credit/debit cards, and UPI (Unified Payment Interface). Once you’ve selected your preferred payment method, you can complete the transaction, and your recipient will receive the funds within a few hours or days, depending on the country and payment method used.
Who Are All Considered As Close Relatives?
The following are considered to be close relatives:
- Members of HUF (Hindu Undivided Family)
- Husband and Wife
- Father (Provided that the term “Father” includes step-father)
- Mother (Provided that the term “Mother” includes the step-mother)
- Son (Provided that the term “Son” includes the step-son)
- Son’s wife
- Daughter
- Daughter’s husband
- Brother (Provided that the term “Brother” includes the step-brother)
- Sister (Provided that the term “Sister” includes the step-sister)
Who All Do We Serve?
| Customer | Description |
| Overseas university students | Send your university fees and living expenses with no hassle |
| International Travelers | Pay for your accommodation and itinerary in advance |
| Overseas family/guardians | Send gifts/maintenance money to your family in another country |
| Medical tourists | Pay for your treatments in another country in advance |
| Business travelers | Facilitate business travels like a pro with fully planned and paid advanced bookings |
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In Conclusion
Sending money as a gift to your loved ones in the USA from India has become more convenient than ever due to the availability of money transfer services. When deciding which service to use, it’s important to consider factors such as exchange rates, fees, and how quickly the transfer will be completed. Among the options available, moneyHOP stands out as an excellent choice. With rates, minimal fees, and fast transfers to multiple banks and payment methods in the USA, moneyHOP ensures a straightforward and thoughtful gifting experience. By selecting moneyHOP, you can give your loved ones a gift that shows your care and consideration while making the distance between you feel a bit smaller.
